What I like so much about this blog is the consciousness John likes to raise about the economy having a physical reality that is not always connected to (certainly not bounded by) our mental constructs. A mind-body problem.
The old model of educating children in an "industrial revolution" economy just isn't going to work anymore. Kids will need data, math, and writing skills to participate in the economy versus being a victim of it. Human capital fused with social and dare I say, "technical capital, will matter a great deal and will help create wealth.
It's an interesting question, isn't it? It strikes me that all of the skills we are talking about could be called producing, managing and communicating flows of information. That definitely requires being fluent in what we call IT but also fluency in how to effectively get the information in and out of people's heads.
In Chinese, 意义 means meaning. 定义 means definition (定 = fixed, set or nailed down) "set meaning." 用意 means use (用) in a particular context. Most people are more comfortable working in one or the other mode, but it seems to me "fluency in getting the information in and out of people's heads" requires a command of both.
Information, capital ($), people, technology, and time. Time is the only resource you really can't get back. Which one is primary and feeds into all the rest? In my mind it's information, because without it you can't make decisions about how to use the others in the best (efficient) way possible. What is the data (information) telling us now, hmmm? Look at structural unemployment as a big clue. We need better education and access to it that gives people the skills they need to participate in the economy and deliver real productivity gains. The third phase of demographic transition is coming to haunt the US., too - even more reason to start investing in things that deliver even productivity gains.
According to a recent Ocean Tomo Report (July 2020 & updated recently), IP as a % of assets of the S&P 500 has passed 90% - up from 32% in 1985, up from 68% from 1995, and up from 80% in 2005. Since growth is driven by IP, protecting U.S. IP is equally as important as generating it...or else we're allowing our primary asset to be depleted. New accounting rules in the works for depletion allowance on IP?
First, I'd love to see the report and bet our group would welcome a link if it's available. Also, correct me if I'm wrong but I think the numbers we are referring to are referring to the value of intangible assets on balance sheets which includes both what I would think of as legit IP (patents, trademarks and the like) and "goodwill", that strange animal that accountants have created to fill in the air pocket between the value of the stuff you are buying and the exalted price you paid to buy the business. In any case, the trend you are talking about will certainly continue as long as information technology drives growth and is important to watch.
"We’d better double down on educating our children ASAP" - - > that, for sure. Making them less entitled and comfy feeling would be a great start.
Would love to hear your thoughts (purely from an economic standpoint) on the implications of the current US approach to: (i) educational meritocracy and (ii) immigration policy (both favoring unskilled immigration over skilled one, and as a combination to the growth of the welfare state)
What I like so much about this blog is the consciousness John likes to raise about the economy having a physical reality that is not always connected to (certainly not bounded by) our mental constructs. A mind-body problem.
The old model of educating children in an "industrial revolution" economy just isn't going to work anymore. Kids will need data, math, and writing skills to participate in the economy versus being a victim of it. Human capital fused with social and dare I say, "technical capital, will matter a great deal and will help create wealth.
It's an interesting question, isn't it? It strikes me that all of the skills we are talking about could be called producing, managing and communicating flows of information. That definitely requires being fluent in what we call IT but also fluency in how to effectively get the information in and out of people's heads.
In Chinese, 意义 means meaning. 定义 means definition (定 = fixed, set or nailed down) "set meaning." 用意 means use (用) in a particular context. Most people are more comfortable working in one or the other mode, but it seems to me "fluency in getting the information in and out of people's heads" requires a command of both.
Indeed. I see business having 5 major resources:
Information, capital ($), people, technology, and time. Time is the only resource you really can't get back. Which one is primary and feeds into all the rest? In my mind it's information, because without it you can't make decisions about how to use the others in the best (efficient) way possible. What is the data (information) telling us now, hmmm? Look at structural unemployment as a big clue. We need better education and access to it that gives people the skills they need to participate in the economy and deliver real productivity gains. The third phase of demographic transition is coming to haunt the US., too - even more reason to start investing in things that deliver even productivity gains.
According to a recent Ocean Tomo Report (July 2020 & updated recently), IP as a % of assets of the S&P 500 has passed 90% - up from 32% in 1985, up from 68% from 1995, and up from 80% in 2005. Since growth is driven by IP, protecting U.S. IP is equally as important as generating it...or else we're allowing our primary asset to be depleted. New accounting rules in the works for depletion allowance on IP?
First, I'd love to see the report and bet our group would welcome a link if it's available. Also, correct me if I'm wrong but I think the numbers we are referring to are referring to the value of intangible assets on balance sheets which includes both what I would think of as legit IP (patents, trademarks and the like) and "goodwill", that strange animal that accountants have created to fill in the air pocket between the value of the stuff you are buying and the exalted price you paid to buy the business. In any case, the trend you are talking about will certainly continue as long as information technology drives growth and is important to watch.
What is the best email to send the report to you?
Yes, the "goodwill" % is large for some tech companies that have been acquisitive. The report does not break out the IP %.
thanks Dean. drjohnrutlledge@gmail.com will work
"We’d better double down on educating our children ASAP" - - > that, for sure. Making them less entitled and comfy feeling would be a great start.
Would love to hear your thoughts (purely from an economic standpoint) on the implications of the current US approach to: (i) educational meritocracy and (ii) immigration policy (both favoring unskilled immigration over skilled one, and as a combination to the growth of the welfare state)